tv [untitled] January 6, 2014 12:30pm-1:01pm PST
items read by secretary. auto demonic occupies 27 thousand square feet at the pier 9 and pays an annual debt of $443,000 duo to date they've made a if $24 million 1ri6789 for improvement. they've made improvements to the south side of pier 89 and the port is currently rectifying the plan for a paperwork let located on the portion of the pier which is a condition of the ac/dc permit. autodesk is proposing to add an additional 34 hundred secret of space which is for the purpose
of constructing it's robotics r&d lab. the third requests autodesk to investor into the space because consideration for thought development the provide a period for the purpose of the involvement and also a representative be credit in the amount of $440,000 the net capital improvement by autodesk is $1.6 million. the amendment provides a rent to the port and the third amendment is subject to the board of supervisors approval and it brought before you because the term, the rent consider exceed the rent portion perimeter.
that concludes my presentation >> thank you. >> so moved. >> second. is there any public comment? any discussion by commissioners. well autistic desk is a great client or tenant to have so we are going to say all in favor >> i. >> i. >> item 10 the issuance of san francisco revenue bonds to fund certainly improvement in the aggregate privilege not not to exceed $30 million not to exceed 12 percent to the indid you form an opinion of trust between the board and trustee and 3 the negotiated sale pursuant to a bond purchase contract and to enter into the contract team and 5 the form of a bond purpose
k5k9 nooifd not to exceed and through the interest costs. >> good evening. i'm here this evening with christen chu our financial viruses and bond council and given the late hour i will try to make that as brief as possible. i'll be back on january 14th for the premier statement and will give the commission additional time to ask questions at that time. this financing plan is not now a to you open may 14 of this year you approved the cruise ship terminal. at that time, i was asking for a amount of 24 u $24 million and
now thirty all to reflect the ability to address potential market urban certainty by the way, there are no change in the project fund requested. the approval i'm requesting is the the issuance of the bodies for not to exceed thirty million a second supplement of induplicative trust and bond authority for the executive director to enter into a contract with the under writer in the form of the purpose argument. as you're aware one of our biggest changed of having limited resources to addressing address an aging infrastructure. and there the ports policy through our private partnerships. the capital policy loudest us to
address the chronic infrastructure meditates and the debt helps with the strategic facility. we're balancing the need to address the repair replacement with the deserve to help with the enhancement. we first identify where the capital projects are. as i said they support our revenues. we looked accident coverage in terms of net revenues related to the debt services. we look at our ability to forecast the tools and meet our operating expense and obviously our debt payment and to fund on
the one hand our ongoing programs. regarding our outstanding obliterations we have $75 million outstanding between your bonds and certificates of participation. our annual pavement a are 5.6-hundred million dollars. the proposed bonds will fund the cruise ship terminal and 3 million prejudice or bias for the historic program. there's bond issuance program for a total anticipation uses of 24 mole and an additional authorization to deal with any uncertainty in the market for a total authorization of thirty million. we expect the issuance to be around 29 million. our crews ship terminal this is the total budget by the various component of the project and
just to reiterate this is very large scale investment that addresses the park and maritime short power etc. one thing to snoet that we while it's a large development we have any other funding funds 20 percent from the city through the voter and general obligation bond and a direct payment from the bond. this is the phase two sources and i can see the revenue bonds highlighted at the 19.5 million and it's a 50/50 split between port soured. we did a good job at getting other sources and support for this project. the northern waft historic piers
when we were here in may he said we wanted to find some improvement we can delivery sup >> i'm happy to recommend this is deal with super struck notices and it's currently red tagged it's a historic fatality and on the national historic district so it's a win-win to find an economic project to bring this jewel back into at large use wore we're asking for more fund for reagan occupant u up to this point for other america's cup or other tenants. in terms of annual payment this brings us to outstanding debt
which 899 million of annual debt in the first 10 years. your budget for another assumes 7.6 million with the ability to meet our 20 percent. in terms of where we think the pricing and rates will come cabin the currency market and your credit we're estimating the rate of 9 percent and this shows the blending rate for the nodding bonds 6 on the 6 is percent and in a torture market and even though recent sale is obviously relying open the city's consider. terrorists are going up but it's a excellent time to borrow.
this slow down shows coverage. we show it by our bonds and it's the way we analyze it and added in the certificate of participation and one increase in the par amount. and i can see that we're maintaining really good coverage with the portfolio but excellent coverage when you shrewd i include the certificate of participation. in terms of our bonding capacity this slide show us the passenger facility and it supports 16.8 million that will be pill on the bonding capacity so our current bonding capacity is 48.8 million will be reduced to
7.8 million for a new capacity of 6.1 million we shouldn't issue this debt today but that's what coverage suggests we can do. in terms of structure it's thirty years the taxable debt will be a.m. terrorized in the ferries year the structure is proposed to lower the overall cost support. the second supplement of indenture our security guard 80 asked to be approved today and once we've got a negotiated sale we'll come back and report to you. in turn of next steps we'll be meeting with the rating agencies in january and february and will present the ports financial picture.
they'll present their rates they'll give the credit recommendation to the committee and we'll receive our rating. we'll be coming back on january 14th all of the estimates projections i was showing you is based on february 28th and we're fine tuning and go through the board of supervisors and post the preempt statement and sell the bonds in march or february if bore lucky. and so i'm and the team is here to answer any questions >> so moved. >> second. second >> any public comment? commissioners any questions?
>> must be the time of day (laughter). >> great presentation and great transparentcy good job easy to understand. >> all in favor, say i. >> resolution is passed thank you. >> item 11 new business. >> any new business from any commissioners? >> i want to at this point thank the sxheb and commissioner katz and executive director to our fine staff. thank you. it's enjoyed working and i'm looking forward to 90 fingerprinting >> this was lovely. okay. this is at the last meeting of the year doesn't feel like it doesn't it.
you're the president >> happy holiday to everyone. it's be it's been an nightmares where we had the moratorium and the america's cup and a lot of activity. we did a lot of work on the maintenance side and even though engineering. we had the one hundred and 50 anniversary it was really yesterday so it's been one of the most active years even in my short time on the commission. i think we, feel like a well deciphered holiday is coming up and yet we have obviously lots of great issues and challenges that. today, we heard a couple of them
we've got more coming in n that regard. we have a lot of transactions we're looking at the streams and i think that is going to be interesting as we chart the course. and on the financial side i'll discuss with monique whether we have a more strategic discussion or where we're heading we can take a breather now. i'm reminder that because i got the audited financials and a there's some trends in there we have to be mindful. i want to thank my commissioners i've jousted working with each of you. i i know you have your interaction with the staff but in terms of interactions among
commissioners we've been able to talk through them even if we have differences of opinions but one of the accomplishment it may not always be the case we vote in unison we seem to come to a consensus and that's good we try to work the issues out so we can have a full understand by the time we get to vote something and that's a consider to everyone involved thank you. is that enough >> yeah. >> i move to adjourn the meeting in memory of nelson mandela. >> second. >> all in favor, say i. >> i. >> thank you, commissioners there was a long meeting there was a party that started in her
francisco. my name is joaquin torres the director of economic and work force development and the mayor's investing neighborhood initiative which is an office coordinates through out our neighborhood commercial services that our private partners bring to bear. it also includes something we realize in the city which is the central market economic strategy. one of those objectives is ensuring that central market is a center here in our city. all of us here are here today to celebrate a very important milestone of building up creativity in our city. to kick us off to talk about this achievement is our mayor, ed lee.
>> thank you, joaquin. he works very hard and others that scour these blocks all the time working with all the residents and artist and small businesses have been wonderful. as many of you know i have worked very hard on the revitalization of market street. we have shown some success, but we've always said and i want to emphasize this, you've heard me say this before, the artist in the community led this effort to begin with. they took a lot of risk. so we've never allowed them to escape from our mind about the future of mid-market. they have always been in our sight whether they are living here, working here, we want to make sure they are staying here. yes, rents are rising
because of our success, but we still should take care of everybody. this is our city 100 percent. today we are announcing one special effort thanks to the can an foundation, wonderful organization, and their collaboration with the community loan fund working with our offices and community base non-profits, we have established something that has been in the works for a number of months, but it's now established well and it's called cast. that is community arts stabilization trust. cast in short for theatre cast. everybody gets that except for those like me who are new to this. i want to be part of that cast because they are taking a
concept that i think you will see repeated in other sectors. that is, when you are a subject and victim to property ownership, you have to change that around. so for the arts, kenneth rain an and the community loan fund, we decided to let us try to turn that paradigm around and become property owners ourselves for the benefit of the community arts program. that's the concept here under cast. rather than just announce it, we are actually announcing the ownership of at least two buildings they have already taken control over at 80 church street which is formally called the doll house. the ownership is now under cast as well as the luggage store. isn't that a wonderful thing to have control over your own destiny?
[ applause ] it's kind of like somebody owning their first home, they have begun to own their own destiny. that's a small part but a very important part of the whole puzzle of keeping everybody on market street engaged and participating in this economic success. i want to say thank you to the rain an fund, thank you to northern california cal community loan program and the luggage store and to all the tenants involved in this building. right now it's not just luggage store, it's hospital house, the arts program that even the tech programs decided they would donate. we got a donation from visual arts to supplement the house and the representative for all the artist. a good
portion that want to be here and stay here and continue practicing the arts for all of us. arts are part of success for san francisco, they are part of the culture, they are part of the international flavor of san francisco. we are going to continue doing everything we can to support their existence, their survival and their success. when we drafted the market street economic strategy, we had arts right there focused. now we've got some answers, now we've got some models to exhibit out there. so these first two successful building owner ships are just the beginning. when the arts programs established themselves as part owner of these wonderful buildings we have here, they are going to also need the continued support of our city, of our residents, of the tech workers up and down
and small businesses up and down market street to not only continue with performances but to support them. arts is about community action and support. i want to thank the arts, the arts commission for being great partners with this and they are also the effort. and i want to thank karen as well. she's been a strong leader to make sure we took care of existing assets and people who were already here. we often talk about people already here, we have to build upon them as the current assets before we invite new people to come. as we invite new people to come, they also have to experience their contributions to the existing culture of this city and of this wonderful market street. you know you are already seeing
the holiday lights appear on market street. what we have towards this holiday what we are doing for residents at 1047 and 1069 to keep them here, the small businesses we are inviting here, the arts program here today we are going to have a lot to celebrate these holidays because they are the same people that have been here forever that still want to be part of the success at san francisco. i want to thank everybody for working together and i know we'll go through a lot of the specifics. this is a wonderful day to announce the existence of cast and thanks to the rain an and loan foundation. thank you very much. >> thank you very much, mr. mayor. when you talk about leadership, it's always important to have the local leadership of your supervisor and the incredible advocacy and teaching that you do for all of us to ensure we are serving the community to the best of our
ability. now we have one of our best supervisors jane kim. >> base guitarist. my first show was at the shop many years ago. speaking about the arts in the 2000 i cofounded a space here in san francisco in south of market. i remember having a performance arts space, we moved three times in 6 years and finding spaces to support them was in incredibly challenging during that time. we were eventually able to share spaces through other arts organizations, but i do remember how important permanent physical space was. that's why it's so exciting to be here 13 years later to
celebrate the acquisition of two very important buildings here in the tenderloin and mid-market for two organizations that have held strong in the mid-market area for a long time and that's leading and -- luggage store gallery, i want to recognize mr. smith and jessica from counter paul. it's so fun to be able to kind of switch roles as our arts community grows. i remember going to the intersection of the arts and now they are here a block away at 5 m and dr. cohen is now the director of yerba buena center for the arts. that is community begins to evolve, we are here growing the job sector here in mid-market. in 2011 when the mayor held a press conference
across the street, we had the highest vacancy commercial rate in the city. what we are seeing now at mid-market is that everyone wants to be here now. of course what that means that everyone wants to be here, what does that mean for the arts community that has always been here. this is going to keep artist and the artist organization here. it was great to work with the california community loan funds and the office of economic development to make this a reality. over the past couple of year with hard work and procuring money and property owners we were able to procure these sites to ensure the arts remain here permanently. this is a huge effort. it's not just the elected officials that get to stay here. it's the main market
community that holds this together. whether it's the collaborative that continues to advocates for public safety and all of you that make this a viable and dynamic and exciting community and diverse. that's the challenge here. we are trying to revitalize this area and still remain diversity. it's not going to happen easy. there is going to be a lot of challenges. but what's exciting is that everyone here from the mayor's office is committed to making that the reality here on market street. thank you very much. [ applause ] >> thank you very much, supervisor. and to talk about the incredible entity that has been created to help us celebrate today is the
president of cast and also a board member of the foundation. that is eric roaden back. [ applause ] >> hi. i would like to thank mayor ed lee and supervisor jane kim. it's incredible to be standing here with them. thank you. we appreciate the commitment the city has shown forecast and for the arts community. i have lived in the tenderloin for 10 years and this is a warm spot in my neighborhood. this used to be a cool neighborhood in san francisco and it's great to be back on track. as the mayor said, this is the greatest place for economic development for the community and it's also important educational